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Ch. 5: Part III: Worst Crisis in Diamond Industry

Ch. 5: Part III: Worst Crisis in Diamond Industry Page of 688 Ch. 5: Part III: Worst Crisis in Diamond Industry Text size:minus plus Restore normal size   Mail page  Print this page
WORLD CRISIS AND WORLD LEADERSHIP                      233
to be moved to Kimberley and the sorting of diamonds was also to be centralized there. A consulting engineer's department was to be set up and
attached to this consulting engineer's department will be a comprehensive geological section whose functions will be to keep in touch with future diamond discoveries and occurrences, not only in the Union, but in other parts of the world. This will protect the trade against surprises in the future. ... It was decided after careful consideration that the consulting engineer's department would be best situated in Johannesburg. . . .
The first consulting engineer was to be Mr. H. T. Dickinson, formerly the assistant general manager of De Beers in charge of mining operations.
♦ IV ♦
The agreement in principle between the Union Government, the producers and the Syndicate arrived at in March 1930 still left many points unsettled. Negotiations had to be conducted, partly with the Mines Department, partly with the Advisory Committee, which was dominated by Ross Frames, partly with the Minister in London. From the standpoint of the industry one of the difficulties—all technical details apart—was the uncertainty concerning the ultimate intentions of the Government as regards the degree of control which it desired to establish over the industry as a whole; it was not certain whether the Government would not establish a Diamond Control Board. As late as 3 September 1930, Ernest Oppenheimer was informed by cable that
at interview with Secretary Mines ... he stated confidentially he had been instructed to draft scheme for putting Board of Control into operation. . . . As result of conversation with P. Ross Frames and Beyers it is obvious they are strongly attracted by idea of permanent board but fear position which would be created by Syndicate stock. . . .
Undoubtedly, the Government had power to set up such a body, by virtue of the provisions of the Diamond Control Act (No. 39) of 1925; just as paragraph 17 of the same Act had made sales agreements invalid unless approved of by the Minister. On the alternative possibility, i.e. of Government representation on the board of the Diamond Corpora­tion, Ernest Oppenheimer personally was prepared to make conces­sions: the proposal for direct Government representation was, however,
Ch. 5: Part III: Worst Crisis in Diamond Industry Page of 688 Ch. 5: Part III: Worst Crisis in Diamond Industry
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